Street Scout Home Values: Many different types of buyers needed to propel full recovery for the Valley from the crash.

Millennials Billy Day and Jessica Simms bought a 1950s home in central Scottsdale in January. It's close to their jobs in Tempe and Chandler as well as near their favorite restaurants and places to hang out.(Photo: Mark Henle/The Republic)

Story Highlights

Housing prices are still down about 10 percent from the pre-crash peak

Home sales are up 11 percent during the first three months of this year.

Millennials Billy Day and Jessica Simms saw their rent jump in central Scottsdale last year. The couple decided to look for a home in the area near their favorite restaurants and places to hang out that they could afford to buy.

David and Anne Bernath are moving to Dallas for her job with American Airlines and needed to sell their recently-renovated Uptown Phoenix home.

Jason and Jessica Duncan lost a home to foreclosure during the crash. They wanted to buy a new one in Mesa’s Mulberry community so much they camped out to be near the front of the line.

Mary and David Clift live in Southern California but have been searching for a house in Arizona to retire with enough space for them, their daughter and an elderly parent.

Steve and Victoria Lindley's children will soon both be in college. The couple wanted to sell their large Scottsdale home and move to downtown Phoenix to be closer to work and the places they spend their free time.

Metro Phoenix’s housing’s market is drawing many of the different types of buyers needed to propel it to a full recovery from the crash. More first-timers, buyers returning from foreclosure, new-home purchasers and Baby Boomers are in the market for Valley houses now than at any time since the crash.

Homes priced right and in the areas and price ranges these buyers want are selling faster than they have in a decade.

Phoenix-area home prices are still down about 10 percent from the peak of the housing boom in 2006. But home sales are up 11 percent during the first three months of this year compared with the same period a year ago, according to Street Scout Home Values, an annual analysis of metro Phoenix’s housing market done with The Information Market.

And more people are definitely looking for homes now, according to JoAnn and Joseph Callaway of the well-known Valley real-estate team Those Callaways.

"Our open house attendance is up," said Joseph Callaway. "Spring break and the tax deadline are seasonal lulls, but they are behind us. And a positive for buyers in the under $400,000 segment is the absence of investor competition."

“It’s all about the homebuyers now. Who’s in the market and who’s out,” said Tom Ruff, real-estate analyst with The Information Market, owned by the Arizona Regional Multiple Listing Service. “There’s an almost frenzy for homes under $350,000 and houses in popular central areas, but there aren’t enough buyers for high-priced homes too far away.”

The Millennials: First time's the charm

Billy Day and Jessica Simms' central Scottsdale home fit their price range of $300,000 to $350,000 and had been renovated, complete with a new kitchen.(Photo: Mark Henle/The Republic)

Most young buyers aren’t flocking to the Valley’s farthest-flung suburbs to find the most affordable homes.

In January, Billy Day and Jessica Simms, who got married recently, bought a 1950s home in central Scottsdale. It's close to their jobs in Tempe and Chandler and already had been renovated, complete with a new kitchen.

“Our price range was set at $300,000 to $350,000,” said Simms, 30, who is a veterinarian. “We wanted to be in a safe neighborhood close to the 101 and Old Town, but were also very much looking for a renovated house with a yard that didn't require a lot of work on the weekend."

Home prices climbed 12 percent in Old Town Scottsdale during the past year.

"The market for homes priced below $500,000 remains very strong and fluid,” said Lloyd Fox of Long Realty's The Fox Group, who worked with the couple. “Homes are definitely selling in that price range, particularly in popular central areas.”

Many Valley neighborhoods, where home prices are typically below $400,000, are seeing double-digit increases.

The median price of a house in central Phoenix’s Cheery Lynn/The Yard neighborhood shot up 50 percent during the past year. The area’s overall median price is now about $285,000.

Experts believe young people are helping drive up the prices.

Anecdotally,, housing analysts and real-estate agents say they have never seen so many Millennials buying Valley homes. But there's no good data because public records for home sales don't require buyers' ages.

“Many younger buyers now want to be able to walk out their door and hit a coffee shop, bar, place to eat or a market,” Catherine Schaeffer of West USA Realty Revelation said. “Many have their minds set on Tempe, Scottsdale or central Phoenix and aren’t interested in more affordable neighborhoods farther out.”

The relocators: Home sells quickly

Anne and David Bernath bought their north-central Phoenix home as a foreclosure in 2013 and spent time and money renovating it. When they recently had to put their house on the market, it sold within a day for $1,000 more than the asking price.(Photo: Michael Chow/The Republic)

Central Valley neighborhoods are drawing buyers who want to be near downtowns with shopping, local restaurants and jobs as well as freeways or light rail. And they are willing to pay more for the location.

David and Anne Bernath love their north-central Phoenix home and hadn’t planned to move for a while. The couple bought the foreclosure home in 2013 and spent time and money renovating their kitchen and bathrooms, including replacing a 1970s yellow bathtub.

But when they found out they needed to relocated for Anne's job, the couple put their house on the market. It sold within a day for $1,000 more than the asking price.

“We may have priced the house a little too well,” Anne Bernath joked, because it sold so fast.

Their house sold for about $250,000 more than they paid for it.

Historic neighborhoods in central Phoenix are also drawing buyers willing to pay for the location.

“Lots of demand for historic homes are pushing prices up,” said Vicki Vanderhoff of HomeSmart Elite. “Some of the most expensive homes in the Willo neighborhood are coming on the market and selling fast.”

Recently, a home in Willo on Cypress Street sold for $895,000, the highest price paid for a home in the area since 2007, she said.

The coveted Arcadia neighborhood that straddles east Phoenix and central Scottsdale is one area of the Valley that is still drawing million-dollar homebuyers. Home sales and prices in the area climbed almost 10 percent during the past year.

The boomerang buyers: Back in own house

Jason and Jessica Duncan had lost a home to foreclosure during the crash. Last summer, the couple and their three children bought a new house for $272,000 in Blandford Homes' Mulberry community in Mesa, and they're already seeing home prices climb around them.(Photo: Tom Tingle/The Republic)

More people who lost houses to foreclosure can now qualify for mortgages again and are buying.

Housing analysts have dubbed this big group "boomerang buyers" because they were bounced out of the housing market and are now coming back.

Jason and Jessica Duncan and their three teenagers were renting a home in central Mesa when one of their friends saw a sign for a new community not far from where they were living.

The couple, who had lost a home to foreclosure during the crash, camped out to be third in line to buy a new house built by Blandford Homes in Mulberry. They moved into their new home last summer and are already looking to move up to a bigger new home in their neighborhood.

“We had a home but went through a foreclosure during the bad years,” said Jason Duncan, who works for the city of Mesa. “But we were back in the market to buy. We thought we would buy a resale, but Mulberry’s location and prices were so good we camped out to buy there.”

Home prices in the development started in the low $200,000s, almost $100,000 below the typical price for a new Valley house.

The Duncans paid $272,000 for theirs and are already seeing home prices climb around them. They are considering selling and buying a bigger house in the neighborhood.

“This could be the Valley’s strongest year for boomerang buyers,” said Arizona housing analyst Mike Orr of the Cromford Report.

The retirees: Cheaper than California

Metro Phoenix’s new-home market has rebounded much slower than expected with several stalls and starts to a recovery during the past few years.

But last summer, new-home sales started to steadily climb for the first time. New-home sales so far this year are up almost 37 percent from last year, signaling the end of a seven-year slump, according to the RL Brown Housing Reports.

Street Scout: Neighborhoods

When Blandford Homes opened Mulberry to buyers last spring, it was the first time buyers had camped out for houses since the housing boom a decade ago. The community was one of the top for sales in metro Phoenix last year.

New homes have typically cost $100,000 more than existing ones in the Valley. To court more buyers, builders have been offering more affordable houses and interesting designs.

Mary and David Clift are moving with her mother and their daughter from Southern California to a new home in Surprise they bought a few months ago in Asante, a community stalled during the housing crash but now drawing buyers in droves.

The Clifts had been looking for a home where they could retire with their daughter, who has autism. Their new house has an apartment tucked inside that Mary Clift’s 90-year-old mom will live in now, and then their daughter will in future years. The multigenerational house design has drawn many buyers for Lennar in metro Phoenix.

They haven't closed yet because the home is still under construction, but prices in that development range from $218,000 to $300,000.

“Our NextGen house is perfect for us, and believe me, we looked at a lot of homes,” Mary Clift said. “We couldn’t have afforded to retire like this in California.”

Lennar reopened Asante, where the Clifts are moving, in January. The development stalled seven years ago during the crash.

In March, Victoria and Steve Lindley sold their Scottsdale home, located on an acre lot complete with guesthouse and art studio, to buy a new condo penthouse in downtown Phoenix’s Portland on the Park development. It only took eight days for their large home to sell.

Both of their children will soon be in college, and the Lindleys were ready to downsize. Their new home is a short light-rail ride away from Victoria Lindley’s boutique Muse Apparel in uptown Phoenix. Steve Lindley sells commercial real estate and specializes in central Phoenix.

They haven't closed on their penthouse condo because it's not done yet. But home prices at Portland on the Park range from $235,000 to $1.25 million.

“Our Scottsdale home became a place we just slept,” Victoria Lindley said. “We both work a lot and spend a lot of our time doing things socially and exploring the Valley.”

Steve Lindley said the couple had always wanted “a more walkable lifestyle,” but couldn’t find it in Arizona before.

A growing number of Baby Boomers with equity in their homes are opting to sell and move to small digs, closer in.

"The major urban cores of Phoenix, Scottsdale and Tempe have transformed to the extent that the population is now demanding planners make them increasingly vibrant," said David Newcombe of Launch Real Estate. He is handling sales at Portland on the Park.

Home prices in Paradise Valley, the original luxury home enclave in metro Phoenix, are down more than 12 percent from last year.

“The hardest-hit price range is for homes over $1 million,” said Bobby Lieb of HomeSmart Elite. “Part of the problem is the volatile stock market, and part of the problem is that sellers price their homes too high.”

March through June is typically considered the peak time for high-end home sales in metro Phoenix. Million-dollar home sales typically take more time to close, and buyers often start shopping in January and February, when the Valley draws many big events and visitors.

“Valley home prices will go down as well as up this year,” said Orr. “The luxury sector is weak, and I am expecting small price declines in areas like north Scottsdale, Cave Creek, Gold Canyon, Las Sendas, Fountain Hills, Ahwatukee, Biltmore and Paradise Valley.”

Eric Kaitz purchased a 5,480-square-foot, $1.75 million house near North Invergordon and East Mockingbird Lane in Paradise Valley. Kaitz owns ITMA Inc., which provides marine companies insurance. The 2000, six-bedroom house features a French country kitchen, a large office with separate entrance and a two-bedroom guest house Sonja Haller/The Republic

Norman A. Pappas paid $3.92 million for a 5-acre equestrian estate in Scottsdale. The 1987, 5,273-square-foot home features a high ceiling, timbered beams, a backyard with a pool, fruit trees and built-in barbecue and a barn with 30 stalls for horses. Sonja Haller/The Republic

Janie Hendrix, the adopted sister of Jimi Hendrix, bought a 5,856-square-foot house in Sanctuary in Paradise Valley. The $2.1 million, Santa Fe-style house features a guest casita, a circular formal room and media room. Sonja Haller/The Republic

John M. and Jennifer M. Dempsey paid $1.9 million for a 6,286-square-foot house at Firerock Country Club in Fountain Hills. They bought the 2009 home through their trust. The 4-bedroom property includes an elevator, theater room and game room. Sonja Haller/The Republic

James Neal and Heather McLaughlin paid $2.1 million for this 6,480 square-foot home at Liberty Estates in Paradise Valley. The sale closed during the week of September 28, 2015. John McLean/The Republic

William and Margaret Clarke paid $2.675 million for this 6,197 square-foot home with pool built in 1991 at Paradise Country Club Estates along the border of the greens at the Paradise Valley Country Club in Paradise Valley. The sale closed during the week of September 14, 2015. John McLean

William and Margaret Clarke paid $2.675 million for this 6,197 square-foot home with pool built in 1991 at Paradise Country Club Estates along the border of the greens at the Paradise Valley Country Club in Paradise Valley. The sale closed during the week of September 14, 2015. John McLean

Charles Surrano paid $3.5 million for this mid-century modern 6,291 square-foot home built this year at Club Estates in Paradise Valley and sold by Rich Brock of Bedbrock Homes.The sale closed during the week of September 7, 2015. John McLean

Demetri and Janae Panai paid $2.675 million for a 6,142 square-foot home built at Citrus Homes on over two acres in the Arcadia District of Phoenix. The sale closed during the week of August 31, 2015. John McLean

Demetri and Janae Panai paid $2.675 million for a 6,142 square-foot home built at Citrus Homes on over two acres in the Arcadia District of Phoenix. The sale closed during the week of August 31, 2015. John McLean

Srinivas Challapalli and his wife Sushmitha Patibandla paid $3.135 million for this 6,263 square-foot home at Paradise Valley Estates in Paradise Valley. The sale closed during the week of August 17, 2015. John McLean/The Republic

Christopher and Katinka Bryson used their trust to pay $2.24 million for this 5,945 square-foot home at Del Ray Estates in the Arcadia District of Phoenix. The sale closed during the week of August 10, 2015. John McLean/The Republic

7734 Investment LLC, an Arizona LLC in Scottsdale, paid $1.75 million in cash for this 2,149 square-foot home built in 1957 on more than two acres at Mummy Mountain Park in Paradise Valley. The sale closed during the week of July 20, 2015. John McLean/The Republic

Vincent Blauvelt used an LLC to pay $2.05 million in cash for this 14,246 square-foot, former Sen. John McCain home on over 2-acres at Brookwood Estates in Phoenix. The sale closed during the week of July 13, 2015. John McLean/The Republic

James Gelb paid $2.498 million for this 8,265 square-foot home with pool built in 1990 at Paradise Pueblos in Paradise Valley. The sale closed during the week of June 29, 2015. John McLean/The Republic

James Gelb paid $2.498 million for this 8,265 square-foot home with pool built in 1990 at Paradise Pueblos in Paradise Valley. The sale closed during the week of June 29, 2015. John McLean/The Republic

Mary Riccobene used her trust to pay $7.2 million in cash for this five-bedroom, 6-bath, 9,684 square-foot home with pool, spa, 5-car garage and guest house at Silverleaf in Scottsdale. The sale closed during the week of June 23, 2015 Sliverleaf Realty DMB Realty Net

Andrea Stewart-Pritchett used her trust to pay $2.85 million cash for this five bedroom, 5 ½ bath 6,982 square-foot home with guest house, kids retreat and pool at Rancho Sunnyvale in Paradise Valley. The sale closed dur the week of June 15, 2015. John McLean/The Republic

Andrea Stewart-Pritchett used her trust to pay $2.85 million cash for this five bedroom, 5 ½ bath 6,982 square-foot home with guest house, kids retreat and pool at Rancho Sunnyvale in Paradise Valley. The sale closed dur the week of June 15, 2015. John McLean/The Republic

Cheryl Venarge used her trust to pay $4.195 million in cash for this 9,045 square-foot home in Paradise Canyon Foothills of Paradise Valley.The sale closed during the week of April 20, 2015. John McLean/The Republic

Cheryl Venarge used her trust to pay $4.195 million in cash for this 9,045 square-foot home in Paradise Canyon Foothills of Paradise Valley.The sale closed during the week of April 20, 2015. John McLean/The Republic

Cheryl Venarge used her trust to pay $4.195 million in cash for this 9,045 square-foot home in Paradise Canyon Foothills of Paradise Valley.The sale closed during the week of April 20, 2015. John McLean/The Republic

Ronald and Katherine Brown paid $3.64 million using their trust to buy this 5,648 square-foot home at Stone Canyon East in Paradise Valley. The sale closed during the week of May 4, 2015. John McLean/The Republic

Ronald and Katherine Brown paid $3.64 million using their trust to buy this 5,648 square-foot home at Stone Canyon East in Paradise Valley. The sale closed during the week of May 4, 2015. John McLean/The Republic

Scott and Paula Lyon used their trust to pay $2.725 million in cash for this 3,299 square-foot home overlooking the Valley from Mummy Mountain Park in Paradise Valley. The sale closed during the week of April 6, 2015. John McLean/The Republic

Scott and Paula Lyon used their trust to pay $2.725 million in cash for this 3,299 square-foot home overlooking the Valley from Mummy Mountain Park in Paradise Valley. The sale closed during the week of April 6, 2015. John McLean/The Republic

Bassam Alsaqran paid $1.7 million for this working ranch and formerly the home of Apache Peak Equestrian Cente, which includes a 2,480 square-foot home, corrals, stables and barn on nearly nine acres south of the Whisper Rock Golf Club in Scottsdale. John McLean/The Republic

7804 Investment LLC of Scottsdale paid $6.45 million in cash for this 11,697 square-foot home on more than two and a half acres on Mummy Mountain Park in Paradise Valley. The sale closed during the week of April 13, 2015. John McLean/The Republic

7804 Investment LLC of Scottsdale paid $6.45 million in cash for this 11,697 square-foot home on more than two and a half acres on Mummy Mountain Park in Paradise Valley. The sale closed during the week of April 13, 2015. John McLean/The Republic

Michael and Ann Romano paid $2.75 million in cash for this 7,210 square-foot home northeast of the Phoenician Golf Club in Paradise Valley. The sale closed during the week of Feb. 23, 2015. John McLean/The Republic

Michael and Ann Romano paid $2.75 million in cash for this 7,210 square-foot home northeast of the Phoenician Golf Club in Paradise Valley. The sale closed during the week of Feb. 23, 2015. John McLean/The Republic

Eric and kristin Kufel paid $2.775 million in cash using their trust for this 4,424 square-foot home at Charnwood in the Arcadia neighborhood of Phoenix. The sale closed during the week of Feb. 9, 2015. John McLean/The Republic

Eric and kristin Kufel paid $2.775 million in cash using their trust for this 4,424 square-foot home at Charnwood in the Arcadia neighborhood of Phoenix. The sale closed during the week of Feb. 9, 2015. John McLean/The Republic

Eric and Kristin Kufel paid $2.775 million in cash using their trust for this 4,424 square-foot home at Charnwood in the Arcadia neighborhood of Phoenix. The sale closed during the week of Feb. 9, 2015. John McLean/The Republic

Thomas and Deanna Smith paid $3 million for this 8,101 square-foot home on more than an acre and a half at Paradise Valley Farms in Scottsdale. The sale closed during the week of Jan. 5, 2015. John McLean/The Republic

Michael and Stacy Lovell paid $2.4 million for this 6,521 square-foot home on nearly two acres south of Camelback Mountain in Phoenix. The sale closed during the week of Dec. 22, 2014. John McLean/The Republic

Richard Jordan paid $2.6 million in cash through his family trust for a 6,167 square-foot home at Collina E Vista in Scottsdale. The sale closed during the week of Feb. 2, 2015. John McLean/The Republic

Avenida Ventures, a Delaware LLC, paid $2.75 million in cash for this 7,848-square-foot home at Mockingbird Lane Estates in Paradise Valley. The sale closed during the week of January 12, 2015. John McLean/The Republic

Paul and Rebecca Tufano used their LLC to pay $2.3 million in cash for this 7,818 square-foot home on more than an acre at Paradise Valley Estates in Paradise Valley. The sale closed during the week of Dec. 1, 2014. John McLean/The Republic

Andrew and Christine Burns paid $3.2 million for this six-bedroom, 6 1/2 bath, 6,815-square-foot house with pool built in 2014 in the Mountain View area of south Scottsdale. The sale closed during the week of Dec. 8, 2014. The Joffe Group

1130 Arabian Park LP, a Canadian limited partnership in Edmonton, Alberta, bought this Arabian horse ranch property featuring an 8,495 square-foot home with pool, assorted buildings and corrals built on five acres southwest of the Ancala Country Club in Scottsdale. The sale closed during the week of Dec. 1, 2014. John McLean/The Republic

Zaheer and Christine Shah paid $3.25 million using an LLC for this 4,955 square-foot home on over two acres at Nauni Valley Ranch in Paradise Valley. The sale closed during the week of Oct. 27, 2014. John McLean/The Republic

Bruce and Mary Robertson of Lake Forest, Ill., used their living trusts to pay $1.8 million in cash for this 4,645-square-foot house built in 1991 on over an acre at Pinnacle Peak Vistas in Scottsdale. The sale closed during the week of Nov. 17, 2014. John McLean/The Republic

Zupra Enterprises Inc., a Canadian real estate investment firm whose president is Zach Carter, paid cash for this 6,245 square-foot home at Mockingbird Estates in Paradise Valley. The sale closed during the week of Sept. 22, 2014. John McLean/The Republic

Gilbert and Judy Shelton paid $4.25 million in cash for this 7,377 square-foot home east of Marriott's Mountain Shadows Resort and Golf Club in Paradise Valley. The sale closed during the week of Sept. 22, 2014. John McLean/The Republic

Zachary Rawling, the Las Vegas attorney using his David Wright House LLC, paid $3 million in cash to have this new home built next door to the David Wright home he has been restoring as a historical landmark in the Arcadia District of Phoenix. The sale closed during the week of Oct. 6, 2014. John McLean/The Republic

Evan and Kristin Horstman paid $2.8 million in cash for this 6,446 square-foot home at Mockingbird Lane Estates in Paradise Valley. The sale closed during the week of Oct. 13, 2014. John McLean/The Republic

David and Kathleen Guarnieri paid $1.875 million in cash for this 3,355 square-foot home at Camelback Ranchos in Paradise Valley. The sale closed during the week of Oct. 6, 2014. John McLean/The Republic

Echo Canyon Real Estate Group, a Delaware limited liability company using a Scottsdale address, paid $3.815 million in cash for this 5,859-square-foot house at Paradise Hills on the eastern edge of the Paradise Valley Country Club in Paradise Valley. The sale closed during the week of Sept. 29, 2014. John McLean/The Republic

Luis-Elena LLC, a Delaware limited liability company in Phoenix, paid $4.1 million for this 14,838 square-foot home on more tha five acres at Merrill Cantatierra in Paradise Valley. The sale closed during the week of March 17, 2014. John McLean/The Republic

Michael and April Radosevich paid $1.58 million in cash for this 4,828 square-foot home on the northeast side of the Camelback Golf Club in Paradise Valley. The sale closed during the week of March 24, 2014. John McLean/The Republic

William and Rene Ko through their trust paid $2.45 million for this 8,175 square-foot home northeast of the Starfire Golf Club in Scottsdale.The sale closed during the week of March 31, 2014. John McLean/The Republic

Richard and Constance White paid $2.275 million for this 6,718 square-foot home on two and a half acres at Stanford Hills in Paradise Valley. The sale closed during the week of April 14, 2014. John McLean

Using their family trust, Walter Han and Kevin Han paid $2.645 million for this 8,032 square-foot home on the north side of the Camelback Golf Club in Paradise Valley. The sale closed during the week of April 28, 2014. John McLean/The Republic

James and Sandra Katzman paid $3.2 million in cash for this 7,212 square-foot home at Biltmore View Estates in Paradise Valley. The sale closed during the week of April 29, 2014. John McLean/The Republic

Christopher Branch paid $2.8 million in cash for this 7,565 square-foot home at Camelback Country Club Estates in Paradise Valley. The sale closed during the week of May 19, 2014. John McLean/The Republic

Neil Spizzen and his wife, Ann Leonard, paid $2.4 million in cash for this 5,222-square-foot home at Madison Lot in Paradise Valley. The sale closed during the week of June 2, 2014. John McLean/The Republic

55 Exeter, a Delaware limited liability company, paid $3.25 million for this 6,328 square-foot home at Marino Estates in Phoenix. The sale closed during the week of August 4, 2014. John McLean/The Republic

Ben Hudye, using a Nevada LLC, paid $2.182 million in cash for a 3,119 square-foot condo at Scottsdale Waterfront Residences. The sale closed during the week of August 18,2014. John McLean/The Republic

CRE Ventures VIII, a Delaware limited liability company using a Phoenix address, paid $7.7 million for this 9,357 square-foot home on nearly seven acres at Camelback Lands in Paradise Valley. The sale closed during the week of Sept. 3, 2014. John McLean/The Republic